The Caixa Geral de Depósitos (CGD) recorded a net loss of 74.2 million euros between January and March, when he obtained a profit of 2.1 million euros in the same period 2015.
This development is largely related to the results of financial operations, which increased from 94 million euro in the first three months of 2015 to 97.3 million euro in the first quarter of this year due to “high volatility felt in international financial markets, “the public bank.
More specifically, are concerned losses on hedging operations of the interest rate ( ‘swap’) made by CGD for the Portuguese public debt .
net commissions fell 8.5% to 115.6 million euros, reflecting “the strong competitive pressure and regulatory commissions on the collection,” said the bank led by José de Matos.
Since the net interest income rose 9.8% to 282 million euros, benefiting from the reduction of financing costs (-20.7% to 411.1 million euros), and exceeding the reduction in interest felt active operations (-10.6% to 693.1 million euros).
Thus, the operating income generated by CGD in the quarter reached 305.6 million euros, 39% less than in the same period last year, and was strongly influenced by the negative trend in results from financial operations.
As for operating costs, there was an annual decrease of 5.5% to 303.7 million euros, “benefiting from containment felt in personnel costs (-4.7%) which is already visible the initial impact of the Horizon Plan program and the reduction in administrative expenses (-5.2%) and depreciation (-12.3%) “said the state-owned bank.
Thus, despite the positive trend in net interest income and operating costs, gross operating income reached EUR 1.9 million in the first quarter of the year due to the impact of Income from financial operations.
the provisions and impairments created for the relevant period fell by 25.4% to 84.2 million euros. In the balance of accumulated this amount had an annual increase of 17% to 988 million euros.
Note to the important contribution of international operations to consolidated net income of CGD, which amounted to EUR 40 million (79% more than in the first quarter of 2015).
the activity of the banks in the group in Macau (EUR 18.7 million), France (EUR 11.6 million), Spain (4 , EUR 2 million) and Mozambique (EUR 2.5 million) represented 92.5% of net income from the international activity.
the transformation ratio (credit on deposits) stood at 88, 5% at the end of March.
the ratio ‘common equity tier 1′ (CET1) ‘phased in’ (in transition to the new rules) was 10.4% (against 10.9% same period last year) and the CET1 ‘fully Implemented’ (with full implementation) was 9.6% (against 10.3% in the first quarter of 2015).
Moreover, one of the issues the public bank still has to resolve is related to contingent capital instruments (so-called ‘CoCo bonds “) subscribed by the State.
in 2012, to recapitalize the CGD, the State injected € 750 million directly in stocks and still 900 million in equity instruments contingent debt for which the public bank pays annual interest.
So far the case has not yet made any return this debt, nor is there any forecast to do . If the bank does not make such payment until 2017, these instruments turn into action.
Currently there is a discussion about the need for the state (sole shareholder) to a capital increase in CGD, an operation that is to be discussed between the Government and the Directorate-General for Competition of the European Commission
the problem is that Brussels considers that a capital increase by the State. – even though the state’s sole shareholder – is a help state, which would imply a new restructuring of the bank, reducing its business and personnel cuts, which is disputed by the Government.
No comments:
Post a Comment